The definitive Act 60 Guidebook.
Comprehensive, current, and written by the people who shaped the first edition.
A practical, chapter-by-chapter guide to Puerto Rico’s Incentives Code — eligibility, application, residency, compliance, and the recent law changes that redefine the program through 2055.
English edition · January 2025 · PDF
Act 60 Guidebook
Eligibility, application, residency, and the reforms through 2055.
- Complete overview of Act 60 tax incentives
- Eligibility requirements and application process
- Compliance obligations and ongoing reporting
- Recent changes and how they affect new applicants
- Real-world case studies and practitioner insights
Recent changes to Act 60 — what you need to know.
New legislation extends Act 60 through 2055 while introducing a revised tax framework for new applicants. The window for the current 0% capital gains structure closes December 31, 2026.
Program extended through 2055
The Act program will be extended through 2055, providing long-term certainty for investors and the broader business community.
Existing decrees fully protected
All previously granted benefits continue to be honored without modification.
New 4% fixed tax rate
A revised tax framework will apply to new applicants beginning January 1, 2027, including a 4% fixed tax rate on certain capital gains, interest, and dividend income.
Six-year non-residency requirement
New applicants submitting after December 31, 2026 must meet a six-year prior non-residency requirement before qualifying.
Primary residence requirement continues
Beneficiaries must continue to establish and maintain a primary residence in Puerto Rico within two years of receiving their decree.
Window for 0% capital gains
Applications submitted on or before December 31, 2026 remain eligible for the current 0% capital gains structure, subject to existing rules.
New rate applies from January 1, 2027
Beginning January 1, 2027, the 4% rate applies to all newly issued decrees.
If you’re weighing whether to file before the 2026 window closes, we recommend an early conversation. The calendar matters.
Puerto Rico’s Incentives Code, plainly explained.
Act 60 consolidates Puerto Rico’s tax incentive programs for qualifying individuals and businesses, offering meaningful tax advantages for those who establish bona fide residency and a genuine economic connection to the island.
For qualifying individuals, historic benefits have included 0% tax on interest, dividends, and certain capital gains. For export-services businesses, a reduced corporate rate applies.
The recent reform extends the program through 2055 and introduces a 4% fixed rate for new applicants beginning January 1, 2027 — while preserving the current framework for those who qualify before December 31, 2026.
Everything you need to make an informed decision.
- 01Complete overview of Act 60 tax incentives
- 02Eligibility requirements and application process
- 03Compliance obligations and ongoing reporting
- 04Recent changes and how they affect new applicants
- 05Real-world case studies and practitioner insights
- 06Residency, sourcing, and substance considerations
Need more than a guidebook?
Our team supports every step of the relocation and compliance process — from Act 60 strategy and decree negotiation to residency, legal oversight, and lifestyle setup.